B&M European Value Retail SA
BME
pitch
short
Sisy Wang
Thesis
B&M is an over-hyped IPO story stock, trading at high multiples that discount overly optimistic assumptions about market share in a saturated UK market. The competition is intensifying, which will likely drive down margins, and the stock lock-up expiration in December 2014 adds further risk.
Did it work?
failed
confidence: high
The stock price has increased by 96.1% since the pitch, indicating that the short thesis did not materialize as expected. The anticipated risks related to competition and market saturation did not lead to a decline in the stock price, and the high multiples were not justified by subsequent performance. Overall, the thesis was invalidated by the significant price increase over the elapsed time.
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